Conway has been part of the Bristol City set-up since the age of seven and enjoyed a breakthrough campaign to the first team in the 2022-23 season.
Manning said he had had “numerous” discussions with Conway since he took over last November but accepted the decision was beyond his control.
“I think there’s real danger sometimes people jump too early,” Manning said.
“I think the biggest bit for me is we want him to stay… but at the same time we need a level of commitment to show that he’s all in.
“Ultimately, the ball is in his court now a little bit and we’ll have to see how that pans out.”
Bristol City finished 11th in the Championship and Manning said any new signings would have to fit “within the parameters” of the club’s budget.
“We need a 10, we need a nine and we need a winger,” he said.
“In terms of depth, competition – we’ve got some really talented players in those areas already, [but] in terms of when you look at the balance of the group, the make up, having different profiles, I think it’s quite important.”
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